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Network Optimization for a New Cryptocurrency
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Optimization and Systems Theory.
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Optimization and Systems Theory.
2018 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Nätverksoptimering av en ny kryptovaluta (Swedish)
Abstract [en]

Since the current cryptocurrencies has failed to reach the level of normality of standard fiat currencies and banking systems there exist a need for a new cryptocurrency if this shall ever be the case. This project will be a part of creating and designing such a cryptocurrency that hope to compete with the fiat currencies of our time. This with the following research question: In the examined network, would increasing the reward received by the participants who successfully validate a transaction result in faster validation time and thereby faster transactions? This question is examined with basis in game theory and simplified simulations to be able to draw conclusions about how the network behaves. Conclusions such as when the participants increases the system speed decreases or that when the money in the system increases there exist an incentive for the participants to work faster. Possible Nash equilibriums are also examined to guide the participants when deciding strategies. Since the purpose of this project is to create a cryptocurrency that can compete with fiat currencies a short comparison between cryptocurrencies and fiat currencies are discussed.

Abstract [sv]

För att kryptovalutor ska ha möjligheten att nå en liknande nivå som vanliga valutor i samhället krävs det att nya kryptovalutor skapas. Detta projekt kommer vara ett delprojekt i ett sådant skapande med den specifika frågeställningen: In the examined network, would increasing the reward recieved by the participants who sucessfully validate a transaction result in faster validation time and thereby faster transactions? Detta undersöks med hjälp av spelteori och förenklade simuleringar för att kunna dra generella slutsatser kring systemet. Till exempel att systemet blir långsammare desto flera användare det innehåller eller att mer pengar i systemet ger incitament till de inblandade att arbeta snabbare. Det undersöks även ifall möjliga Nash equilbriums finns som beskriver vilka strategier de inblandade bör utgå ifrån. Eftersom syftet med projektet är att skapa en ny kryptovaluta som ska nå samma nivå som vanliga valutor görs även en kort jämförelse mellan kryptovalutor och vanliga valutor.

Place, publisher, year, edition, pages
2018.
Series
TRITA-SCI-GRU ; 2018:200
National Category
Computational Mathematics
Identifiers
URN: urn:nbn:se:kth:diva-229820OAI: oai:DiVA.org:kth-229820DiVA, id: diva2:1214650
External cooperation
HAJ Enterprise AB
Subject / course
Applied Mathematics and Industrial Economics
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Supervisors
Examiners
Available from: 2018-06-08 Created: 2018-06-07 Last updated: 2018-06-08Bibliographically approved

Open Access in DiVA

The full text will be freely available from 2018-11-15 11:34
Available from 2018-11-15 11:34

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  • apa
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  • Other locale
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Output format
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